Oil marketers demand official FX rate from FG to ease petroleum importation

Stakeholders in the downstream sector have tabled their demands to the Federal Government requesting foreign exchange at the Central Bank of Nigeria, CBN rate to enable swift and easier importation of petroleum products into the country.

The marketers made this appeal during an online workshop with the theme “Deregulation of the Nigerian downstream sector: The day after,” which was organised by the Nigerian Petroleum Downstream Industry in partnership with the African Refiners and Distributors Association in Lagos.

According to a statement from the National President, of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Okoronkwo, who was represented by the National Operations Controller, IPMAN, Mike Osatuyi, the effects of the planned removal of petroleum subsidy would be greatly cushioned if the FG encouraged the CBN to provide forex to marketers at the official rate.

Osatutyi explained that if the FG fixes the issue with forex, the price of PMS would be maintained below ₦500 after subsidy removal adding that the oil marketers were firmly behind the FG's decision to remove subsidy in the petroleum sector.

Corroborating Osatuyi’s position, the Executive Secretary of the Major Oil Marketers Association of Nigeria, Clement Isong, further predicted that PMS would sell for as low as ₦300 per litre if marketers get dollars at CBN rates.

Isong explained, “Petrol could sell as low as ₦300 per litre depending on how the new administration manages the foreign exchange rates.”

“The gap between the official and black market rates depends on demand and supply and once the government decides to set an official exchange rate, everyone automatically becomes spectators because the government is not generating enough dollars.

“The next government must manage the forex rates better to gain market confidence, and the market includes you and me – the masses, who use dollars every day,” he said.